Health systems reach agreement on Bluffton services

Hilton Head Hospital and St. Joseph’s/Candler Health System have reached an agreement on the expansion of medical services in Bluffton.

In a news release Friday afternoon, each system has agreed to drop opposition to the issues before the S.C. Department of Health and Environmental Control.

St. Joseph’s/Candler has agreed to drop opposition to Hilton Head Hospital’s application for a certificate of need for a Bluffton Outpatient Center. Hilton Head Hospital also agreed to drop its challenge of DHEC’s decision to allow St. Joseph’s/Candler’s acquisition of a CT scanner without a certificate of need.

In June, Bluffton Today reported that documents obtained from state regulators show there was a lot at stake if the 60,000-square-foot outpatient facility was built: Savannah’s St. Joseph’s/Candler health system stands to lose $7 million to $20.6 million, which would equate to $1.7 million to $5.3 million in lost net revenue.

SJC and Beaufort Memorial Hospital filed appeals with the court in June challenging the S.C. Department of Health and Environmental Control’s decision to uphold a “certificate of need” award allowing Hilton Head Hospital to construct its Bluffton Outpatient Center.

The Bluffton Outpatient Center is intended for the relocation and expansion of outpatient services, such as digital mammography, bone density, pediatric rehab, along with new offerings — a 32-slice CT scanner and a nuclear medicine camera.

Beaufort County estimates the new facility would boost annual revenue by about $242,000. That figure represents all tax authority groups, including the county, according to Beaufort County assessor Ed Hughes. The projection is based on a handful of assumptions, including that the agreement came without property tax incentives. The town of Bluffton’s slice is $45,600, based on a $20 million facility estimate, according to town staff.

“At the end of the day, we all want what is best for the patients living in Bluffton, Hilton Head and the surrounding communities. It was important to move on with the business of providing excellent and expanded services to the people of Beaufort County,” said Paul P. Hinchey, president and CEO of St. Joseph’s/Candler, in the Friday news release. “The positive response we’ve received from our growth in the area shows that expanded medical services are needed, and this agreement will allow both systems to move forward at the appropriate time.”

Mark T. O’Neil, Jr., president and CEO of Hilton Head Regional Healthcare said, “We are extremely pleased to be able to proceed with the development of a new outpatient center in Bluffton. The outpatient center is being built so that healthcare needs of the overall area in Southern Beaufort County can be better served, and we believe this outpatient center in Bluffton will increase accessibility and quality of outpatient services.”

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